A leading semiconductor company embarked on a large-scale Agile transformation to enhance efficiency, collaboration, and speed in its software-related R&D. Partnering with executives and local management, we identified key pain points, defined strategic transformation goals, and developed a structured roadmap to implement SAFe (Scaled Agile Framework) at scale. This included launching Agile Release Trains (ARTs) to streamline development processes and improve cross-functional collaboration.
Implementation Timeline & Scope
- July 2023 – Present: Progressive rollout of ARTs across the software R&D organization.
- Stakeholders Involved:
- Core Team (Lean-Agile Center of Excellence - LACE, sponsors, key stakeholders): ~20
- Experts across teams and product groups: several 100
- Pilot ART: ~600 employees in full software R&D rollout
- Primary Focus: Software R&D with increasing integration into adjacent business areas.
- Transformation Milestones:
- Q3–Q4 2023: Established transparency on key challenges and aligned on potential solutions.
- Q1–Q3 2024: Launched and coached the initial pilot ART, while aligning on the next steps for broader implementation. The LACE team expanded following an internal restructuring and business unit consolidation.
- Since Q4 2024: Additional ARTs have been launched, expanding the transformation scope to include Large Solution and Lean Portfolio Management topics.
The transformation continues to evolve, ensuring sustainable agility and strategic alignment across the organization.
Challenges & Implementation Strategy
The Software R&D organization faced increasing difficulties in managing complex and competing product requirements using traditional project-oriented approaches. The existing project portfolio management system lacked the necessary transparency and alignment, making it difficult to prioritize and coordinate work effectively.
While small, local Agile initiatives demonstrated promising results at the team level, initial attempts to scale Agile across multiple teams failed to achieve the desired outcomes. The organization recognized the need for a structured, enterprise-wide approach to scaling Agile and decided to adopt the Scaled Agile Framework (SAFe). To ensure a successful transformation, they partnered with KEGON for strategic guidance and implementation support.
One of the key organizational complexities was the geographic distribution of expertise:
- The majority of development experts were located in Romania.
- Most quality assurance and testing specialists were based in Vietnam.
To establish a strong foundation for the transformation, the initial Program Increment (PI) Planning for the pilot Agile Release Train (ART) took place in Romania. Teams attended in person whenever possible, while representatives from Vietnam traveled to Romania to participate onsite. The remaining team members from Vietnam joined remotely, ensuring that all stakeholders were engaged in the planning process.
This structured approach laid the groundwork for scaling Agile successfully across the broader organization.
Implementation Strategy & Key Actions
Following the initial alignment on the transformation’s objectives, the organization committed to a structured and collaborative approach to implementing SAFe at scale. To build a shared understanding and secure commitment for this significant change, a two-day Value Stream & ART Identification Workshop was conducted with key stakeholders and executive sponsors.
Laying the Foundation
- Prior to the workshop, the Lean-Agile Center of Excellence (LACE) was initiated, with its first members actively contributing to the workshop's preparation.
- The workshop took place in early 2024 in Munich, leading to:
- The initial design of the value stream network
- The identification of the first pilot Agile Release Train (ART)
Following the workshop, the implementation roadmap was refined in collaboration with the LACE, sponsors, and relevant stakeholders.
Building Agile Capabilities
To ensure a smooth transition and empower employees for the transformation, a series of targeted training activities were conducted:
- Leading SAFe training for executives and leaders involved in the pilot ART
- Role-specific training, including in-house Product Owner/Product Manager (POPM) training and participation in external public courses where necessary
Our Key Contributions
As transformation partners, we provided hands-on guidance and coaching across multiple levels of the organization:
- Executive Consulting – Raising awareness, defining transformation goals, and securing sponsor buy-in
- LACE Coaching & Facilitation – Establishing and guiding the LACE, conducting key workshops
- Cultural Shift Enablement – Driving a shift towards stronger product orientation and trust-based collaboration within R&D
- Value Stream Identification & Reconfiguration – Designing and aligning value streams to enable effective ARTs
- ART Launch & Execution Support – Preparing, training, and launching ARTs, followed by ongoing coaching of teams, Scrum Masters, RTEs, and Product Management during PI execution
By combining structured implementation with strong leadership engagement and coaching at all levels, the transformation gained momentum and positioned the organization for sustainable agility.
Results & Impact
The pilot ART is successfully up and running, operating as expected. As anticipated, the initial ART setup—designed as a pragmatic starting point—has provided valuable insights into necessary refinements. This was an expected outcome and had been considered when selecting the pilot ART.
Key Achievements
- Increased Transparency & Alignment – PI Plannings have proven to be highly effective in providing cross-team visibility, aligning stakeholders on shared objectives, and highlighting capacity constraints early.
- Scalability & Adoption – Additional ARTs have been identified and successfully launched, with required role-specific trainings now being delivered internally by experienced practitioners.
- Empowered Teams & Leadership – Teams are gaining confidence in working within the ART structure, while leaders are increasingly shifting towards empowered decision-making and strategic alignment.
- Improved Collaboration & Efficiency – Cross-team dependencies and risks are now more transparent, reducing inefficiencies and bottlenecks.
- Cultural Shift Towards Agile Mindset – A stronger product orientation and a mindset shift towards continuous learning and iterative improvement are becoming visible across the organization.
- First Steps Toward Lean Portfolio Management (LPM) – The need for a more structured approach to Portfolio Management has become evident. Initial steps toward LPM concepts are now being implemented to better align strategy, funding, and execution.
Current Limitations & Next Steps
While the transformation has made significant progress, some challenges remain:
- The current focus is still primarily on software R&D, with limited collaboration between software and silicon (hardware) R&D. Future iterations will explore how to enhance cross-functional alignment across both domains.
- As ARTs expand, further refinements in organizational structure and coordination mechanisms will be necessary to maintain agility at scale.
- Lean Portfolio Management (LPM) will be a key area of focus moving forward to ensure long-term strategic alignment and value-driven prioritization.
The transformation is well underway, and the organization is now positioned to extend agility beyond software, refine its portfolio strategy, and continue scaling Agile practices across business and technology functions.
